Ramallah  - The Palestinian Authority condemned on Wednesday the right-oriented Israeli government's decision to build 900 housing units in the settlement of Gilo near Jerusalem on the West Bank.

Palestinian Presidential Spokesman Nabil Abu Rudeineh said in a written statement to reporters that the Israeli decision "is a destruction of the possibilities for resuming the peace process."

"The decision of (Benjamin) Netanyahu's government to build settlement units will close all the doors for resuming the peace process and it will destroy all the efforts to resume it," said Abu Rudeineh.

He also said that "this policy is rejected," adding "such a decision is an Israeli message directed to the Americans."

Israel considers Gilo, a southern neighbourhood of Jerusalem built on occupied West Bank land and touching on the Palestinian city of Bethlehem, as part of its "eternal capital."

It has publicly refused international demands to stop construction in areas of the city which are built within the municipal boundaries it has set for itself, but on occupied West Bank land.

The international community, however, regards neighbourhoods built beyond the "green line" separating the West Bank from Israel and East Jerusalem from West Jerusalem, as settlements. (dpa)